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Taxpayer rolled over IRA to a different bank-1099R shows it as taxable

The taxpayer took out $50,000 from Bank A, which sent a 1099R showing it all as taxable and also "taxable amount not determined".  Code 7. 

He rolled it over a month later to Bank B, which shows the rollover contribution.  It should not be taxable but if I show the $50,000 distribution and put 0 taxable, I get an error message.  How do I report this?

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dkh
Level 11

Complete the 1099R boxes same as shown on 1099R  then do as @Camp1040  says find the section on the worksheet that will change the information to a rollover

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Camp1040
Level 8

Scroll down on the 1099-R worksheet  and read the sections that follow and you will find out how to do it.  Rollover section of the worksheet is a big clue.

dkh
Level 11

Complete the 1099R boxes same as shown on 1099R  then do as @Camp1040  says find the section on the worksheet that will change the information to a rollover

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qbteachmt
Level 15

"It should not be taxable"

But, for reference, Bank A didn't know this. They don't know anything about what the taxpayer will do with those funds, and even providing the info as intent, doesn't mean it happened or met the requirements.

Only the taxpayer knows if they did everything right and that this qualifies for rollover treatment. That's why you are entering the info into the worksheet. Enter the 1099-R as it was issued, then address the followup actions that the taxpayer did.

Realize, please, that if there was withholding on that distribution, did the rollover include that amount as a "make up" amount of funds? If not, you have a Partial Rollover and partial taxable distribution.

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"Level Up" is a gaming function, not a real life function.

Got it, thanks.  Not saying Bank A did anything wrong. 

qbteachmt
Level 15

"Not saying Bank A did anything wrong."

Of course not. They issue the 1099-R for the money Out.

Not for what the taxpayer decides to do with it.

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"Level Up" is a gaming function, not a real life function.
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